The depositor-shareholders of First Federal Savings and Loan Association of Bucks County plan to meet at the bank's headquarters, 118 Mill Road, Bristol, on July 21 to vote on whether to combine with financially stronger First Savings Bank of Perkasie, into a larger bank, to be called Penn Community Bank, according to a statement mailed to depositor-shareholders of the mutual savings bank.
The deal, announced last fall, will build a company with a combined $1.8 billion in loans and other assets, and 24 branches, uniting the bank's separate markets across Bucks County.
Penn Community, to be organized as a state-chargered mutual savings bank, will have more capital, relative to loans, and be able to sell more banking products, than First Savings could by itself, the bank told investors in their statement justfiying the deal. The merger follows First Savings CEO Fred Schea's decision to retire last year; his departure left the bank's board members feeling it was "an opportune time to evaluate their alternatives," according to the bank's statement.
After the merger, the combined bank board will be able to name new members without shareholder approval, the bank told owners. Depositors will qualify for shares of the combined bank in case of liquidation. The board could vote to convert from mutual ownership by depositors, to stock ownership by investors, if three-quarters of directors agree.